Will the Affordability Care Act be a Catalyst for HCM Analytics?

PPACA_2HR leaders on the fence about investing in an analytics platform may now have the  justification needed for moving forward, courtesy of the US Federal Government and its impending Patient Protection and Affordable Care Act (PPACA), which goes into effect on January 1, 2014.  With complex requirements and potentially significant financial consequences, the PPACA will require many employers to move beyond standard tracking and reporting platforms to more advanced, real-time decision support tools to proactively manage the many aspects of this complex legislation.

Fundamentally, the PPACA is about reducing the number of uninsured Americans  (numbered at more than 50 million in 2010) while attempting to address the affordability and quality of that healthcare coverage overall.  State-level health insurance exchanges (HIX) are being formed to make available the minimum requirements across benefit coverage and cost-sharing standards, while employers grapple with tradeoffs in health benefit plan designs and premium costs vs. the federal tax credits and subsidies available to low- and middle-income workers.

For employers, the requirements of the PPACA quickly get complicated with look-back and ongoing calculations of hours worked and future hours, benefits eligibility vs. enrollment, premiums to wages ratios, and evidentiary reporting to government agencies.  Non-compliance with this still-being-clarified legislation can lead  to significant penalties for employers, not to mention the many downstream impacts on employee relations and employer brand.

For some organizations, calculating and paying the penalty will be the quickest route to compliance while others will want to weigh various workforce modeling scenarios to determine their best approach (provide coverage as intended, reduce worker hours for a percentage of employees, etc.).  Leading payroll and workforce management platforms such as ADP, Ceridian and Kronos are actively enhancing their software to deliver the calculations and reporting required by the ACA, often including the ability to anticipate when benefits eligibility will be triggered based on future labor schedules.

Across the many mandates of the PPACA, (employer mandates, healthcare tax credits and individual mandates), behaviors at work will change that will affect the costs – both direct and hidden – of compliance choices.  Shifting workers to part-time will result in increased unemployment claims; additional part-time staff may be hired to fill the gaps of the reduced workforce; turnover may be adversely affected; workforce tax credit eligibility can be affected and additional training and ramp-up time needs to be factored in.  As they evaluate the direct costs of their compliance alternatives such as benefits premiums, labor expenses and penalties, employers must also take into account these and other indirect or hidden costs associated with their choices.

Getting to a clear understanding of the direct and indirect costs requires complex analysis and modeling, a prime use case for an analytics platform.

One of the players in this market is Equifax,  which recently augmented its Equifax Workforce Solutions division with the acquisition of analytics technology provider eThority in 2011.  Leveraging the eThority platform, Equifax is introducing a new solution called the “Affordable Care Act Impact Analysis and Management” tool to help employers model and monitor the impacts of PPACA on their business. The tool enables employers to see costs (including labor, benefit premiums and potential fines) at group or detail levels based on different modeling scenarios. It also highlights the associated costs resulting from anticipated new hires and increased unemployment claims that can offset savings from those initial scenarios, a level of analysis that many traditional payroll and workforce software providers are not offering.  Equifax can also leverage the data reported to them by thousands of employers across the country, representing tens of millions of workers, to report on labor and payroll trends across regions, industry and other segments, further augmenting the modeling scenario evaluations.  As desired, Equifax also provides additional consulting services including evaluation of new assumptions as well as overall program management and audit support.

The modeling platform is interactive, adapting to changes in law and assumptions. Delivered via subscription or available on premises, employers can access data beyond their own workforce data to make better, more informed choices with regard to how they will achieve compliance with PPACA mandates.

Investing in an analytics platform can bring more than just workforce insight and modeling capabilities: it can be a powerful tool in managing risk and compliance across the entire enterprise.  In the case of the Affordable Care Act, it may be the only tool that will effectively support employers in their daily need to monitor and manage the complexities of this legislation.  The requirements of PPACA actually begin before January 2014, with employers needing to make decisions and communicate benefit options, costs and coverage to employees during the Fall Open Enrollment schedule. Employers should be evaluating their options now, and the availability of new tools like the Equifax ACA Impact Analysis and Management solution are timely additions to the market.

Event Report: One Year Later, Ceridian Dayforce HCM Delivering on its Vision

Last year’s acquisition of Dayforce heralded Ceridian’s pivot from a payroll service bureau to an HCM vendor focused on technology and innovation. One year later, Ceridian demonstrates strong customer adoption of its new platform and continued HCM process transformation to enable HR organizations to create a more effective workforce.

 

Last month I attended Ceridian’s annual analyst forum, where members of the executive team shared their vision and strategies for the future. Ceridian HCM CEO David Ossip put an interesting spin on the role of HR in the future when he stated,

The value of HR isn’t in becoming a strategic partner. The goal of HR should be to help the company create the most effective workforce.”

This sentiment reflects the pragmatism of a team committed to innovation with tangible value; a focus on the processes, tools and information needed to create and maximize the value of the workforce.  Below are the highlights I took away from this most recent analyst briefing.

  • Ceridian continues its pivot from an HRO service provider to SaaS technology provider. With the advent of cloud services and the ability to centralize the skills and knowledge needed for optimized compliance and support, it only makes sense that businesses would look to the cloud for specialized support of processes such as Payroll and global HR. With Dayforce HCM, Ceridian is helping its customers move from former “lift and shift’” HR Outsourcing (HRO) deals to the advanced benefits of software in the cloud coupled with centralized specialization and compliance support. The platform itself includes capabilities for messaging, analytics, workforce activities, mobile access via native iOS and Android support, and other foundational items necessary for comprehensive HCM support, with collaboration advances underway as described further below.
  • Accelerating customer momentum validates the data-fueled platform. Available in the US and Canada, momentum is strong, with over 700 clients live on the Dayforce platform (of more than 1000 total clients), with roughly 30-50 clients going live each month. Approximately 15% of the live Dayforce HCM clients are those that have migrated from core Ceridian applications. One of the key benefits touted by the Dayforce clients is their ability to view and act on data BEFORE the time is worked, before payroll is processed, tackling potential problems before they happen. Other benefits include the ability to see fully burdened costs before the time is actually worked, and soon, to manage the rolling eligibility requirements of the PPACA (Patient Protection and Affordable Care Act), all through a real-time engine designed to support compliance and information needs proactively, not reactively. Batch processes or after-the-fact alerts will eventually become the purview of “legacy” vendors unable to keep pace with the demands for instant data analysis and decision support.
  • The unified, end-to-end HCM platform is emerging, but still a year or more away. Today the Dayforce HCM platform delivers core HR, Payroll, Workforce Management (Time & Labor, Absence, Leave Management) and Benefits functionality, targeted primarily to North American operations. Expanded global HR support is on the roadmap, but for global payroll, clients can immediately tap into payroll services across almost 60 countries via Ceridian’s international payroll solutions (IPS). Through this managed services offering, consolidated payroll results across global and local payroll providers can be fed back from the IPS aggregator to Dayforce payroll for global reporting.Support for more strategic talent management processes will begin with the launch of Dayforce Recruiting, targeted for Fall 2013. Ceridian today has a standalone recruiting offering, but that solution will be sunsetted as the next generation recruiting offering from Dayforce becomes available. The initial Dayforce recruiting solution will support managing the candidate’s status and progression through the recruiting lifecycle. (However, I also expect to see some innovations in scheduling and onboarding from this development team that demonstrates at every opportunity the advantages of a unified platform and real-time rules processing.) In 2012, the analyst community was advised that advanced compensation and performance management was slated for 2013, but recruiting has now taken top priority for the Dayforce HCM team. As a result, these and other investments in strategic talent management will be pushed out to 2014. There are no current plans for delivery of a learning offering (LMS) and we can expect partner solutions to fill this gap for the next few years.
  • The experiential platform takes center stage over transactional systems. The Dayforce HCM team introduced Engage, its new social platform due later this year that will become the new front-end User Interface (UI) for its applications. Ceridian clearly understands that social enablement is more than just conversations, it’s about getting real work done. In fact, collaboration is viewed as such a fundamental component to today’s workforce processes that Engage will be included in all Dayforce HCM offerings at no additional cost. Clients not yet ready for such collaboration in their core workforce can simply turn it off, accessing it in the future as desired.Continued investment will be needed before it achieves competitor status in this space, as the current focus is largely engagement via activity streams, but the initial offering of Engage will be a good first step toward both augmenting and transforming traditional work processes through social collaboration. While I agree with David Ossip that the “mobile” hype is giving way to broader considerations of “accessibility,” I do not agree that “social” is giving way to “activity streams.” The term “social” often has a conversational, non-work-related connotation; however the idea of purposeful social – social collaboration that is contextual and event-support driven – is an entirely intuitive and evolutionary approach to getting work done. Activity stream integration is important (and the initial Engage offering will include single sign-on (SSO) to facilitate this with Salesforce Chatter and Microsoft Yammer), but collaboration should also happen at the transaction itself; at the point of need.  It’s too early to know the depth of social support planned by the Dayforce team or how it will integrate more deeply with broader social enterprise networking tools.
  • Contextual content will increase in prominence. This is a continuing and interesting play for Ceridian: their EAP (employee assistance program) services via LifeWorks, acquired by Ceridian 1998. Usually we think about EAP services as a pool of resources available for employees to call when needed, or as a repository of research and information available through onsite and internet access. This market is transitioning, however, from SaaS-based solutions to a focus on more contextual content delivered to the end users (a push rather than a pull model). Ceridian has a vision to evolve its LifeWorks offering by embedding EAP content into talent-related events in the Dayforce platform, ensuring context-relevant information at the time of need. Such a move will begin to move Ceridian into the knowledge enablement space of vendors like Infor Enwisen and Peoplefluent (formerly Authoria), but they’ll have a network of EAP counselors driving much of that content development behind their offering. Ceridian’s social platform and context engine requires additional development to achieve its full potential. Regardless, it is good to hear that team thinking about enabling transactions with contextual content as they build out the future Dayforce HCM talent management offerings.
  • Continuing core investments demonstrate customer commitment. Mindful of not disenfranchising its core customer base, Ceridian continues to invest in its current applications and other service lines including international payroll, pay cards, tax filing and others. It should also be noted that Ceridian not requiring a forced migration to the Dayforce platform, allowing clients to move as appropriate for their needs.

The Bottom Line

As I indicated in my write-up last year, Dayforce HCM is positioned to perform well in a market ready for process transformation.  It has delivered a large amount of functionality in the single year since the acquisition, and net-new customer uptake validates its market readiness. Strong leadership, an unwavering commitment to customer success for new and install base clients, and innovative approaches to traditional processes make Ceridian a viable and disruptive force to watch in the HCM market.

NewsGator Collective 2013: Survival of the Social

In a time when technology vendors are starting to shun the “social” moniker, it was refreshing to hear the messaging at the NewsGator Collective 2013 Annual User Conference that NewsGator is all about “making social real” in the enterprise. 

If you’re not familiar with NewsGator, it is a leading provider of social technologies, delivering its flagship solution, Social Sites, on top of Microsoft SharePoint (an application in use at more than 70% of businesses today). It has more than 4 million users across hundreds of customers, including Kellogg’s, Mars, JP Morgan Chase, American Family Insurance, Comcast, Unisys, Kraft Foods, Overstock.com, Merck and others.

In all, more than 200 customers (including those named above), partners and thought leaders gathered in Denver for this 3-day event, immersing themselves in social business by sharing best practices and research, engaging in live brainstorming sessions, networking, and even engaging in a live hack-a-thon resulting in four coded customer-driven projects slated for delivery with NewsGator’s next release.

President and CEO Daniel Kraft (newly appointed in August 2012), kicked off the event by sharing his view of how human networks have enabled human success and business progress from one era to another. He described the evolution from a “Network of Hands” (the industrial age) to a “Network of Minds” (the knowledge economy) to today’s environment where emotions and passion are unconstrained by physical location and instead are enabled through social technologies (the “Network of Hearts”).

(source: NewsGator)

Kraft believes this evolution demonstrates “survival of the social,” and cautions that, “if you do not buy into it, somebody else will.” The case studies shared during the conference spoke of increased customer retention, improved sales productivity, reduced turnover of high impact employees and more, demonstrating tangible business benefits from social investments. With over $1 trillion potential value to be unlocked annually, including 20-25% increased productivity of high skilled knowledge workers (according to McKinsey Global Institute)1, it’s hard to argue that Kraft is anything but spot-on with his assertion.

Employee Engagement is not just an HR Responsibility

Heads of Marketing, IT, Learning and Collaboration, Communication and other business units led the conversations around motivating and engaging the workforce, identifying high performers and key contributors, ensuring sustainable adoption, and measuring impact and results.

If these sound like the traditional concerns of HR and Human Capital Management (HCM) technologies, you’re right. Yet the number of attendees representing the HR function at this conference was relatively limited.

For me, this was further evidence of two main trends concerning talent management in an era of social connectivity:

1) HR does not own employee engagement.  Driving organizational performance through employee engagement is not simply a concern of the HR organization; leaders from across the enterprise are stepping up to rethink work and how best to drive sustainable results. Increasingly important to achieving better work and talent management results are the “non-HCM” technologies making their way into the enterprise: social tools and collaboration platforms that help people align, connect and get work done every day.

2) HR is not leading social initiatives.  When social technologies are part of the new thinking (as is increasingly the case), HR is more often the supporting player (if not absent altogether) rather than the driving force behind such initiatives. The risk to HR is being sidelined as an administrative or policing function rather than establishing itself as a strategic business partner that both adds to and creates new value for the organization.

With all the evidence that social enablement facilitates engagement and alignment, and that an engaged and aligned workforce has direct, positive effect of business outcomes, why isn’t every company “doing social”?

The answer, according to Catherine Flax, Chief Marketing Officer for JP Morgan Chase’s Wholesale Business, is complex. “It’s an evolutionary process for many companies,” said Flax during a Future of Work panel at the NewsGator Collective. “With the concerns about compliance…it’s easier for companies to say “No” than to say “Yes” to social.” She added that saying “no” is actually a bigger risk than saying “yes,” given the many benefits of a socially-enabled enterprise.

I refer to this risk as the new ROI of Social: the Risk of Ignoring. If social tools are not part of the fabric of the organization, introduced during the hiring and onboarding process and leveraged throughout the work lifecycle as a natural way to get work done, the risk for disengagement, misalignment and reduced productivity are significant. These are concerns for every leader in the organization, not just HR.

My POV:

Last year, Microsoft dealt NewsGator a one-two punch when it announced its latest release, SharePoint 2013, would deliver social capabilities, followed by its acquisition of Yammer, an enterprise social technology vendor. However, NewsGator has not just rallied but thrived since those announcements. It reported more than 100 new customers in 2012 and many new product innovations including Social Site’s dual compatibility with both SharePoint 2010 and 2013 from a single code base; a new user interfaced dubbed “Lookout”; support for social learning use cases through its new application, NewsGator Enrich; broader analytics capability through its Webtrends partnership; advanced mobile capabilities and more.

NewsGator has also recently announced that it is rearchitecting its Social Sites suite, eliminating its dependency on Microsoft SharePoint and becoming platform agnostic.  This will put NewsGator more squarely in the crosshairs of enterprise social networking (ESN) competitors of all sizes including Jive, IBM, Huddle, Igloo and tens of others.  Its differentiation will come through a vertical focus on specific businsess-driven use cases.  In fact at this month’s Collective conference, NewsGator announced the development of several of these use-case driven applications to drive tangible business results, centered on Corporate Communications, Field Enablement and Innovation.  Development of these and additional use cases will advance its competitiveness in the ESN market beyond SharePoint-based solutions.

Additional investment in analytics beyond usage and adoption would be a welcome investment from NewsGator as well, as companies are increasingly challenged to communicate the impact of their social investments.  At Constellation Research, we are seeing a trend away from traditional technology RFPs to increased scrutiny on business outcomes. More and more companies are reporting real business results with social technologies, and the question of “social” in business is moving from “if” to “when and how”.

Current and prospective NewsGator clients will benefit from its continued investments in social use case innovations, continued integration to the Microsoft stack as well as integration beyond the Microsoft apps to SAP, Salesforce.com Chatter and others. Clients will also benefit from NewsGator’s new Adoption Framework, a methodology focused on helping organizations achieve better results at the intersection of people engagement, business alignment and technology enablement. For many organizations, making SharePoint “work” is a top priority, and in this endeavor, NewsGator currently has the lead position for both cloud and on-premises SharePoint customers (an important fact since Microsoft has announced it will not integrate Yammer to on-premises SharePoint beyond basic connectivity). For companies not betting their enterprise collaboration futures on Microsoft, NewsGator’s move to a platform-agnostic solution and its continued build-out of social applications for targeted use cases will make it a viable alternative as well.

The path to enterprise social collaboration may come from a single technology platform, like NewsGator, or through an aggregation of social-enabled technologies (for example, integrations of social-enabled tools across HCM, CRM and core communications). Either way, making social real in the enterprise – helping organizations unlock the untapped potential of a humanistic approach to business both within and across an enterprise – is a business imperative.

Your POV

What do you think?  Has your company embraced  the concept of “Survival of the Social” or are you still evaluating the business case for social investments? Are you a NewsGator customer with stories to share? Add your comments to the blog or send us a comment at Y (at) ConstellationRG (dot) com.

Please let us know if you need help with your Social Business efforts. Sign up for a Constellation Academy Workshop or let us assist with:

  • Assessing social business readiness
  • Developing your social business engagement strategy
  • Creating a new vision for the future of work
  • Vendor selection
  • Connecting with other pioneers

Note: NewsGator is a client of Constellation Research.

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1 “The social economy: Unlocking value and productivity through social technologies.” McKinsey Global Institute, July 2012.

News Analysis: Infor Adds SaaS LMS with Acquisition of CERTPOINT

Proving it has not lost its appetite for acquisitions, on March 4th, 2013, Infor announced its planned acquisition of New York based CERTPOINT Systems, Inc., a SaaS provider of global learning management software (LMS) and learning content management software (LCMS).

CERTPOINT backgroundinforcertpoint

Founded in 1996, CERTPOINT (formerly Vuepoint) offers comprehensive learning solutions including LMS, LCMS, content authoring, competency management, integrated web conferencing, mobile access and social learning to more than 1300 clients across more than 80 countries.  Marquis customers include Toyota, Honda, Motorola, Ralph Lauren, LANCOME and Weightwatchers. Like Infor, it boasts a hybrid offering, delivering on-premises, hosted and SaaS-based offerings; the majority of its clients, however, utilize the SaaS applications, consistent with adoption trends in the human capital management (HCM) market.  CERTPOINT also provides consulting services including content development, implementation and strategic consulting.  It currently employs approximately 50 staff, most based in New York.

The acquisition expands two key areas for Infor:

  • With the CERTPOINT acquisition, the Infor Human Capital Management (HCM) suite delivers a comprehensive end-to-end offering. Tarik Taman, the GM of Infor HCM, noted that, “The acquisition of CERTPOINT will enable Infor to offer customers an end-to-end HCM solution, delivered to help maximize access and business insight and achieve breakthrough performance. In addition to complementary functionality, the acquisition of CERTPOINT sends the signal that Infor intends to be atop the leaderboard of SaaS Enterprise Human Capital Management solution providers.”
  • Point of View (POV): As Infor continues to move its HCM suite of products fully to the cloud (watch for their announcements in this area in the Summer of 2013), the acquisition of SaaS-based CERTPOINT completes the suite with solid LMS capabilities. And in today’s global, virtual and mobile work environments, CERTPOINT’s delivery of personalized electronic content to mobile devices is precisely the type of capability required for business performance.  Integration via Infor’s technology framework, Infor ION, will focus on the HCM products (Lawson HRM, Talent Management and Service Delivery), but will also extend to other Infor solutions to meet strategic opportunities. WebEx Communications is the current partner to CERTPOINT for delivering integrated web training and conferencing; Infor does not currently have a competing offering but I expect this to be an area of development for the Infor ION team in the future. From an end-to-end perspective, Infor is one of the few providers of HR Service Delivery (having acquired this from Lawson/Enwisen in 2011).  The Infor Enwisen platform has served as a unifying solution across all Infor Lawson HCM products, delivering portal, knowledgebase and multi-tiered support across the suite. Integration with Enwisen will bring rapid value-add to CERTPOINT customers.

  • CERTPOINT fortifies Infor Healthcare solutions with critical learning capabilities. Certification and compliance training are mission critical activities in the healthcare industry.  Combined with the verticalized solution for Healthcare from Infor HCM, clients will be able to move beyond certification and compliance to the creation of high performing healthcare organizations.
  • Point of View (POV):  Infor gained a major presence in Healthcare with the acquisition of Lawson software in 2011, and so CERTPOINT’s Healthcare industry solution is a natural launch point for showcasing the combined offering. Infor has, in fact has already begun this push, as it positions richer capabilities for the Healthcare industry as well as increased thought leadership with the hiring of a Chief Medical Information Officer (CMIO) to oversee the Infor Healthcare suite. Other industries such as Automotive, Food & Hospitality and Manufacturing  will be early solution targets as well. One of Infor’s points of differentiation is its micro-vertical strategy: beyond the standard 21 or so industry vertical classifications, Infor recognizes the unique needs coming from more than 2000 micro-verticals within these broader industries. CERTPOINT clients will benefit over time from Infor’s micro-vertical focus as this specialized knowledge infuses and expands the capabilities of its nine current vertical offerings.

Bottom Line:  Infor Advances its Move to the Cloud

Today,  Infor is the third largest provider of enterprise applications and services, with a valuation of $16B and five consecutive quarters of double-digit license revenue growth. It doesn’t just compete with Oracle and SAP, however; it increasingly competes with the likes of Workday and Ultimate as clients look to the cloud for Enterprise HCM.  The acquisition of CERTPOINT not only completes the Infor HCM suite, it does so through a SaaS offering that enables rapid, low cost deployment and frequent innovations in a business-critical area.  Additionally, CERTPOINT provides support for the extended enterprise – training for partners, suppliers and customers – including eCommerce capabilities for companies that deliver training for profit. With Infor Ming.le, Infor’s social platform still in development, CERTPOINT’s social learning will also be a welcome and timely addition to the Infor HCM suite.

As always, the devil is in the details, but given that CERTPOINT today integrates with many HCM solutions (including its strategic partner, Ultimate Software), the initial phase of the Infor/CERTPOINT integration should come to market quickly, with more strategic points of leverage following in subsequent iterations.  Infor clients will benefit from this acquisition through the additional depth of learning capabilities; CERTPOINT clients will have a new, integrated path to consider as they evaluate the upgrade or replacement of their current HCM infrastructures.

Related posts:

Event Report: #InforSummit Reveals More Than a Redesigned Infor

Seven Ways Infor is Advancing HCM (Hint: Lawson is but One)

“Ok, Now You’ve Scared Me.”

CarnacA few weeks ago, I participated in a virtual panel focused on “The Future of Work”, providing my views into the changing landscape of work, not just as we enter 2013, but looking further out to 3, 5 or even 10 years from now. The discussion, sponsored by Cornerstone OnDemand, is available here for playback.

I began the session by sharing my view that the future of work, first and foremost, is already here. Organizations have long been affected by and responding to the dramatic changes coming from disruptive technologies, rapidly shifting worker demographics and dynamics, and new competitive pressures from an especially dynamic business climate. The challenges are real and taking place today. Looking to the future of work, one could sum up the anticipated impacts in a single word: More. More intensity. More pressure. More change. More risk. But also, more opportunity. More engagement. More transparency. More impact.

This “more” concept translates to a change in all aspects of work: namely, the Who, Where, When, What, How and even Why of work needs to be rethought:

  • The “who” of work: Who are your workers?  What generation do they represent? Are they employees or free agents? What is the composition of your workforce from a diversity perspective and how are practices in attracting, engaging, motivating, developing, measuring and rewarding the workforce evolving?
  • The “where” and “when” of work: Work takes place at the office, at home, on the go; in connected or disconnected modes from laptops, tablets, smartphones and desktops; face-to-face with our local colleagues or virtually across the globe; in shared coworking spaces where our cubicle neighbor may not even work for the same company. What systems are we using to ensure access to the people and information necessary to get work done? To drive engagement and crank up innovation?  In today’s business climate, are we fostering results from any place, at any time, from any device, or constraining people and results with a traditional mindset to work?
  • The “what” and “how” of work: The very nature of work is changing as the lines between employees, customers and suppliers blur and technology transforms work to more interaction-based engagements.  Big data insights and predictive analytics provide new views of influence and impact while social network analysis helps us understand the flow of knowledge in the enterprise and how work is getting done.  We’re just scratching the surface on better insights into the what and how of work in today’s social enterprise; what role will HR play in this new world of big data?
  • The “why” of work: Motivations differ by generation and by individual; they span pay and benefits, career advancement, skill development, recognition and increasingly,  social responsibility and altruism.  Are the rewards and recognition systems used in corporations today resonating with these very diverse workforce motivations? Do our company cultures sustain the drivers of the emerging workforce?

I riffed a bit on the sweeping changes required in business due to the above and received my favorite response of the hour from Cornerstone’s VP of Corporate Development and Strategy, Jason Corsello.  His comment?

Ok, now you’ve scared me.”

Jason is wicked smart. And he is anything but ‘scared’ about the future of work, as he and his colleagues work to guide Cornerstone’s strategy and disrupt the legacy market with cloud, social and mobile technologies. But his off-the-cuff comment was a good one, highlighting that despite all the advances we’ve made in processes and technology, there is still much more to do; more to plan for, to learn from, to capitalize on,  to embrace.

More.

Are you ready for the future of work?

Read a summary of the full panel discussion or listen to the event directly.  Be sure to catch the latest research on the Future of Work, Consumerization of IT and the New C-Suite, and other critical business themes at Constellation Research, Inc..

Disclosure: Cornerstone OnDemand is a client of Constellation Research, Inc.

Breakaway Strategies: Looking Beyond HCM Vendors for HCM Technology

breakaway

In the run up to this year’s annual HR Technology Conference, I’ve been meeting with HCM technology vendors large and small. As expected, almost every vendor articulates an interest in, if not full vision for, social enablement of its offering. Some offer social capabilities today, some are expanding beyond initial forays in recruiting or learning, and others point to future directions with social based on customer demand. The path to social is also varied, coming through native development, partnership or even acquisition.

The Social HCM market is nascent, with vendors evolving their strategies and customers wrestling with questions ranging from business applicability to internal ownership of “social” in the enterprise (should these initiatives be driven and owned by IT, Legal, HR, Marketing, or…?)

Applying a different lens to the definition of Social HCM – one focused on employee enablement, engagement, and knowledge acceleration – brings another class of vendors into view: social business software providers. These vendors deliver on the foundations of social learning and social talent management, and have been doing so for years. They’re just not top of mind for HR when shopping for those solutions because they don’t typically market to an HCM audience with an HCM messages.

Consider players like Atlassian, Jive, NewsGator, Socialtext, Telligent, IBM and the many others that serve the social business software market. By their very nature of being social collaboration tools, they support many foundational processes such as social learning and social talent, with companies routinely reporting measurable benefits across employee and business performance. Yet for various reasons – including the fact that HR is not usually a driver for social technologies – you don’t see these players at the HR Technology Conference. But you should, as they routinely deliver on these and many other social use cases that are of direct interest to HR leadership:

  • Social Onboarding: establishing and assigning new hires to communities and groups; ability to follow people/content; system-driven recommendations on who to follow, groups to join, content to review.
  • Social Performance: informal and social feedback via activity streams; badges or other recognition feedback and social rewards; granting “skills” or “expertise” levels to others in the social network; improved engagement through gamification.
  • Social Goals: broadcasting activities and goals (including status and completion); soliciting feedback on goals and projects; granting badges or other recognition; task management for shared goals and objectives and identifying related work of others.
  • Social Learning: creating, posting, sharing, rating, tagging and following content; informal learning through micro blogging and activity streams, often with embedded and actionable content; expertise identification; ideation and crowd sourcing innovation across the enterprise.

Looking at the list of Exhibitors at the HR Tech Conference, I found only two pure-play social networking providers exhibiting this year: NewsGator1 and Yammer1. (I say only two, as Socialtext is now part of Talent Management provider Peoplefluent, and other solutions like Saba and SuccessFactors are already broader talent management providers with embedded platforms. In fact, even Yammer is now part of the broader Microsoft stack and can no longer be considered “pure play.”)

NewsGator in particular is an interesting addition to the list of exhibitors this year. If you’re not familiar with them, NewsGator has been delivering social business applications for many years through their Social Sites offering. They also integrate directly into Microsoft SharePoint – a solution in use by an estimated 75% of organizations.

Recently, NewsGator launched a new offering called NewsGator Enrich, which goes beyond the core use cases above and focuses on specific learning use cases to power informal, social learning across the enterprise. This latest offering includes a socially driven knowledge base for collaborative knowledge development and exchange, and interactive video learning capability for complex learning scenarios. A few of the core tenets of the Enrich Knowledge Base (KB) are described below.

  • Create knowledge base (KB) items in context of business workflows. Conversations in the activity stream, or specific question and answer      activities are readily tagged and saved to the knowledge base. A bookmarklet enables any web page to be referenced to the KB with a single click, and documents of any type are quickly added as well. Content can also be created directly within the knowledge base, turning any employee into a contributor to organizational know-how.
  • Quickly access the right knowledge. In addition to filtering KB content based on the most recent, most viewed or other categories, user-added metadata such as titles, tags and descriptions facilitate searching, discovery, and categorization of the knowledge base content.
  • Turn unstructured Q&A into a powerful resource. Answers can be accumulated, with the “accepted” answer identified for clarity and consistency.
  • Drive engagement with embedded gamification. Award badges and provide recognition to users based on their contributions and activities.

The HCM technology market is undergoing a significant shift. As we move from systems of transactions to systems of engagement, traditional “HCM” processes will be redefined, and it is only natural that new solution providers emerge from outside the HCM space. The move by NewsGator to deliver on highly targeted social learning use cases is the latest case-in-point, as well as a broader signal to the market that HCM technologies can come from non-HCM vendors.

While you’re checking out the many vendors at this year’s HR Technology Conference, I encourage you to stop by the booths of “non-traditional HCM” vendors as well. The door is open for social technology vendors to expand beyond their social collaborative networking foundations and deliver next-generation approaches to traditional learning, talent management and other “people” processes. I expect we’ll see more from NewsGator and others like them in the future, as “HR Technology” gives way to more business outcomes focused “Work Management Technology.”

1(Disclosure: NewsGator and Yammer are both clients of Constellation Research.)

The Path to Social Talent: What is Your Vendor’s Route?

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There is an interesting tug of war taking place in the world of social talent management software. Some players take the side that “social” should be a core competency of the talent platform, and hence delivered natively with that solution/suite. Others consider social a technology that should be plugged into talent and human capital management (HCM) solutions, and are developing various connectors to fit the different social tools. Yet still others are taking a hybrid approach – acquiring social technologies with a view toward deep and unique leverage of the social platform, while building plug-ins to additional social tools.

Different approaches will certainly yield different results. Integrating social to bring activity streams and social conversations into a talent process is a good first step, but even in today’s early adopter market the emerging buyers for social talent software are looking for greater benefits from their social investments. Building out (or acquiring and deeply integrating) a social platform to bring social collaboration into a suite of talent processes can be a game changer for organizations, but what if other social tools are already in use? Will the enterprise end up with too many tools, too much noise and ultimately face social fatigue?

Let the technology vendors duke out the “HOW” of “getting to social.”  Buyers should instead focus on the “WHAT”: what business value is generated from these newly social applications? Ultimately the vendor needs to demonstrate, and buyers will need to prove to their own organizations, that investments in social technologies yield results such as these:

  • Sustainable employee engagement, not just a short term increase from a passing fad;
  • Beyond connections and file sharing – although this is a good start – improvement in how work gets done (efficiency, quality, improved productivity, cost reductions, etc.);
  • Rapid access to knowledge and expertise wherever it resides across the enterprise;
  • Accelerated innovation;
  • Improved workforce connectedness for frictionless work;
  • Revenue creation;
  • Improved customer outcomes.

Look for my latest Quark entitled “Understanding the Paths to Social HCM: Evaluating Integrated vs. Embedded Social Technologies for HCM,” now available to all Constellation Research clients. I’ll also touch on this topic in my upcoming presentation at HR Technology Conference in Chicago, on Wednesday October 10, entitled “The Social Enterprise: New Tools Transform How Work Gets Done”.

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